Saturday, July 13, 2024

Brits loaning more to friends than ever before to help make ends meet amidst cost-of-living crisis

New data from the money management app, HyperJar, also reveals least affluent families saw disposable income plummet £127 last month

·  23% of Brits state they are now lending more money to their friends than ever before

·  19% admit they are embarrassed to speak openly about their finances due to fear of judgement

·  13% say they are relying on friends to get them out of financial trouble, whether that is with debt or getting through until payday

·  1-in-4 Brits (25%) subsequently state that their biggest mental health strain comes from managing their family’s finances

Personal finance expert and founder of HyperJar, Mat Megens, dissects current spending trends across the nation and outlines friendship as a vital lifeline for Brits amidst the cost-of-living crisis

As inflation rates hit a 40-year high and the price of food sits at its highest since 2008 in the UK, Brits across the nation are feeling the pinch more than ever as the cost-of-living crisis impacts their ability to spend without concern or anxiety. New nationally representative data from the money management app, HyperJar, has revealed that people are having to rely on the financial support of their friends just to make ends meet. Almost 1-in-4 people (23%) stated they’re now lending more than ever before, with a further 13% admitting to regularly getting loans from friends just to get out of debt or survive until payday. This is having a severe impact on the wellbeing of those who are struggling, with 1-in-4 people now stating that their biggest mental health strain comes from managing their family’s finances.

This marks the latest concerning trend amidst the cost-of-living crisis, with new data from HyperJar and Retail Economics’ Cost of Living Tracker revealing that the least affluent households in Britain have seen their disposable income drop by £127 in the month of May. In addition, the data shows that despite the energy bill grant announced by the government for all households, more than eight in ten families (84%) feel they still need to reduce their non-essential spending this year.

The government’s announcement of a one-off £650 cost-of-living payment will go some way towards minimising the damning effects of the current climate on the most vulnerable, but the recent trend of friends having to step in to help others financially shows more support is urgently needed. HyperJar’s most recent research also unveiled that a stigma is rife across the country which is preventing people from being open about their finances. Almost 1-in-5 Brits (19%) admitted they feel embarrassed to discuss their financial situation or are fearful of being judged, which often prevents them from receiving the necessary support. 

Mat Megens, CEO of HyperJar, discusses the findings from HyperJar’s latest nationally representative data: 

“The fact that so many people now rely on friends for support is indicative of personal finances under severe strain – it’s like the Bank of Mum & Dad has been drained, so we’re now turning to the Bank of Mates.

“At a time like this, it’s important to make money a talking point rather than something to feel embarrassed about. You can develop a little bit of a support group with friends or family which can help to reduce anxiety.  

“We believe making money a topic of conversation rather than something taboo can lead to much better outcomes. Yes, that might be borrowing or lending a little between trusted friends, but it could also be an honest conversation about sharing costs for things you might not have considered before, from Sunday lunch at yours to even bigger things like Christmas.

“On a personal level, it’s just about making sure we’re doing all we can to make our money go as far as possible. There is no magic wand, unfortunately. But we can all drill down into our budgets to understand where our money is going, to save and cut costs where we can.

“Controlling the controllable is something everyone can do to get on the front foot. Nowadays, when paying is so frictionless, it’s easy to overspend because there’s less of a concrete connection with money. An understanding of what you have and where it needs to go will help make navigating this period less stressful.”

What HyperJar can do to help
Taking inspiration from the simple saving mechanism of the jam jar, HyperJar provides a visually engaging saving app that empowers users to control their expenditure and reorder how they use their money. From nurturing sensible spending habits for children, to being rewarded for committing expenditure with household name retailers with a 4.8% annual growth rate, HyperJar’s digital Jars represent an easy method for managing personal finances. 
Helping Brits get in control again, HyperJar’s simple toolkit of clever tech puts us one step ahead, one jar at a time, helping our reaction to ‘money’ transform from being a trigger of fear, to a source of feeling in charge again. Whether it’s teaching your kids to budget their pocket money, putting a collective jar together to save for your summer holiday, or keeping track of how much you spend on the weekly supermarket shop, HyperJar is here to help you use your money in smarter ways. 

Sam Allcock
Sam Allcock
Sam heads up Cheshire-based PR Fire, an online platform that has already helped over 10,000 businesses to grab widespread media coverage on their news at an extremely accessible price point.

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